His best finish over three years with Luzern was third, but Babbel also led Hertha to Bundesliga promotion and qualified Stuttgart for Champions League football.

Wanderers chairman Paul Lederer labelled Babbel the right man for the club.

“In the next 18 months we will have our new training facility finished, our new stadium open and our club ready to take another giant,” Lederer said. “Having a coach like Markus involved with this club will make us a force in this league as we strive to win trophies, return to the AFC Champions League and make a statement, not only in Australia, but internationally.”